Demand-side issues of the service economy

Pascal Ughetto

Review of Political Economy, 2004, vol. 16, issue 4, 473-483

Abstract: This paper examines the relevance of the demand-side approach to the development of a service economy. Its starts by addressing some concerns about the possibility of creating a growth regime based on services. Discussion has mainly focused on the increasing share of services in consumer spending; but equally important is the fact that most products--goods and services alike--integrate a significant service-to-the-client dimension. The paper considers the costs incurred by strategies that aim to create value for the client and that require the existence of a purchasing power likely to validate them.

Date: 2004
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DOI: 10.1080/0953825042000256694

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